U.S. Markets closed
  • S&P 500

    4,432.99
    -40.76 (-0.91%)
     
  • Dow 30

    34,584.88
    -166.44 (-0.48%)
     
  • Nasdaq

    15,043.97
    -137.96 (-0.91%)
     
  • Russell 2000

    2,236.87
    +3.96 (+0.18%)
     
  • Crude Oil

    71.96
    -0.65 (-0.90%)
     
  • Gold

    1,753.90
    -2.80 (-0.16%)
     
  • Silver

    22.42
    -0.33 (-1.44%)
     
  • EUR/USD

    1.1732
    -0.0040 (-0.3402%)
     
  • 10-Yr Bond

    1.3700
    +0.0390 (+2.93%)
     
  • Vix

    20.81
    +2.12 (+11.34%)
     
  • GBP/USD

    1.3737
    -0.0059 (-0.4286%)
     
  • USD/JPY

    109.8950
    +0.1770 (+0.1613%)
     
  • BTC-USD

    47,653.17
    -765.12 (-1.58%)
     
  • CMC Crypto 200

    1,193.48
    -32.05 (-2.62%)
     
  • FTSE 100

    6,963.64
    -63.84 (-0.91%)
     
  • Nikkei 225

    30,500.05
    +176.71 (+0.58%)
     

Intricon Reports Third Quarter 2020 Results

  • Oops!
    Something went wrong.
    Please try again later.
·8 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

ARDEN HILLS, Minn., Nov. 09, 2020 (GLOBE NEWSWIRE) -- Intricon Corporation (NASDAQ: IIN), an international company engaged in designing, developing, engineering and manufacturing miniature interventional, implantable and body-worn medical devices, today announced financial results for its third quarter ended September 30, 2020.

"Third quarter results included both year-over-year and sequential revenue growth as we see improvement across all our target medical markets. Continued emphasis on expense control while leveraging our core competencies to enter new medical markets for long-term growth remains a priority," said Scott Longval, President and Chief Executive Officer. "Our acquisition of Emerald Medical Services earlier this year is already demonstrating a meaningful contribution, while our directed focus on partnerships with innovators entering the emerging hearing health market is gaining traction."

Third Quarter Highlights:
• Revenue of $27.4 million compared to $26.9 million in the prior year

  • Diabetes revenue declined 7.7% year-over-year

  • Other medical revenue increased 81.6% year-over-year, which included the contribution from recently acquired Emerald Medical Services

• Gross margin of 26.3%, compared to 25.2% in the prior year period
• Net income per diluted share of $0.07 versus net loss of $0.03 per diluted share in the prior year period

Third Quarter 2020 Financial Results
For the 2020 third quarter, the company reported net revenue of $27.4 million versus $26.9 million in the comparable prior-year period.

Revenue in Intricon’s Medical business was $20.6 million, an increase from $19.1 million in the comparable prior-year period. The year-over-year increase was driven primarily by our medical coils business and the impact of Emerald Medical Services which the company acquired in May 2020, partially offset by the reduction in orders due to uncertainty surrounding the COVID-19 pandemic.

Hearing Health revenue was $5.5 million in the third quarter of 2020 compared to $6.4 million in the prior-year third quarter. The revenue decline during the third quarter was largely attributed to the absence of hi Health Innovations revenue and a reduction in advertising as part of the Hearing Help Express restructuring efforts.

Gross margin in the third quarter of 2020 was 26.3%, compared to 25.2% in the prior-year third quarter, primarily due to the cost reduction initiatives and higher volumes.

Operating expenses for the third quarter were $6.7 million, compared to $7.2 million in the comparable prior-year period. The change in operating expenses year over year was due to the cost reduction initiatives.

The company posted a net income of $0.6 million or $0.07 per diluted share in the third quarter of 2020, versus net loss of $0.3 million or $0.03 per diluted share, for the 2019 third quarter.

Conference Call
Intricon will hold a conference call today, November 9, 2020, beginning at 4:00 p.m. CT / 5:00 p.m. ET. Investors interested in listening to the conference call may do so by dialing 866-795-7248 for domestic callers or 470-495-9160 for international callers, using conference ID: 6348919. A live and archived webcast will be available on the “Investors” sections of the company’s website at: www.Intricon.com.

Forward-Looking Statements
Statements made in this release and in Intricon’s other public filings and releases that are not historical facts or that include forward-looking terminology, including estimates of future results, the impact of the Emerald acquisition, statements regarding the estimated costs and expenses of the restructuring and estimated annual expense savings, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by known and unknown risks, uncertainties and other factors that are beyond Intricon’s control, including without limitation, the impacts of the COVID-19 pandemic and measures taken in response, the risks associated with the Emerald acquisition, , and may cause Intricon’s actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and other factors are detailed from time to time in the company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2019 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. The company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise.

About Intricon Corporation
Headquartered in Arden Hills, Minn., Intricon Corporation designs, develops and manufactures miniature interventional, implantable and body-worn devices. These advanced products help medical, healthcare and professional communications companies meet the rising demand for smaller, more intelligent and better-connected devices. Intricon has facilities in the United States, Asia, and Europe. The company’s common stock trades under the symbol “IIN” on the NASDAQ Global Market. For more information about Intricon, visit www.intricon.com.

Investor Contact
Leigh Salvo
(415) 937-5404
investorrelations@intricon.com

INTRICON CORPORATION
MARKET REVENUE
(Unaudited)

THIRD QUARTER

YEAR TO DATE

($ in 000's)

2020

2019

Change

2020

2019

Change

Medical

$

20,649

$

19,099

8.1

%

$

55,125

$

60,784

-9.3

%

Diabetes

14,518

15,723

-7.7

%

41,569

50,837

-18.2

%

Other Medical

6,131

3,376

81.6

%

13,556

9,947

36.3

%

Hearing Health

5,491

6,358

-13.6

%

13,845

20,044

-30.9

%

Value Based Direct-to-End-Consumer

953

1,510

-36.9

%

3,513

4,876

-28.0

%

Value Based Indirect-to-End-Consumer

1,779

2,443

-27.2

%

3,888

7,419

-47.6

%

Legacy OEM

2,759

2,405

14.7

%

6,444

7,749

-16.8

%

Professional Audio Communications

1,227

1,436

-14.6

%

3,502

4,972

-29.6

%

Total

$

27,367

$

26,893

1.8

%

$

72,472

$

85,800

-15.5

%

INTRICON CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)

Three Months Ended

Nine Months Ended

(unaudited)

September 30,

September 30,

September 30,

September 30,

2020

2019

2020

2019

Revenue, net

$

27,367

$

26,893

$

72,472

$

85,800

Cost of goods sold

20,169

20,120

54,096

62,253

Gross profit

7,198

6,773

18,376

23,547

Operating expenses:

Sales and marketing

1,365

2,609

5,038

9,071

General and administrative

3,654

3,715

11,673

10,551

Research and development

1,458

840

3,868

2,902

Restructuring charges

-

-

1,171

-

Impairment loss

-

-

-

3,765

Other operating expenses

253

-

746

-

Total operating expenses

6,730

7,164

22,496

26,289

Operating income (loss)

468

(391

)

(4,120

)

(2,742

)

Interest income, net

41

240

322

703

Other income (expense), net

192

(52

)

293

(458

)

Income (loss) from continuing operations before income taxes and discontinued operations

701

(203

)

(3,505

)

(2,497

)

Income tax expense

47

87

94

334

Income (loss) from continuing operations before discontinued operations

654

(290

)

(3,599

)

(2,831

)

Loss on disposal of discontinued operations

-

-

-

(1,116

)

Loss from discontinued operations

-

-

-

(597

)

Net income (loss)

654

(290

)

(3,599

)

(4,544

)

Less: Income allocated to non-controlling interest

10

-

17

-

Net income (loss) attributable to IntriCon shareholders

$

644

$

(290

)

$

(3,616

)

$

(4,544

)

Basic income (loss) per share attributable to IntriCon shareholders:

Continuing operations

$

0.07

$

(0.03

)

$

(0.41

)

$

(0.32

)

Discontinued operations

-

-

-

(0.20

)

Net income (loss) per share:

$

0.07

$

(0.03

)

$

(0.41

)

$

(0.52

)

Diluted income (loss) per share attributable to IntriCon shareholders:

Continuing operations

$

0.07

$

(0.03

)

$

(0.41

)

$

(0.32

)

Discontinued operations

-

-

-

(0.20

)

Net income (loss) per share:

$

0.07

$

(0.03

)

$

(0.41

)

$

(0.52

)

Average shares outstanding:

Basic

8,936

8,764

8,877

8,738

Diluted

9,272

8,764

8,877

8,738

INTRICON CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEET
(In Thousands, Except Share Amounts)

(unaudited)

September 30,

December 31,

2020

2019

Current assets:

Cash and cash equivalents

$

16,081

$

8,523

Restricted cash

647

639

Short-term investment securities

14,176

23,451

Accounts receivable, less provision for doubtful accounts of $365 at September 30, 2020 and $325 at December 31, 2019

9,192

8,993

Inventories

20,463

16,377

Contract assets

10,592

10,237

Other current assets

1,426

1,975

Current assets of discontinued operations

-

80

Total current assets

72,577

70,275

Machinery and equipment

45,083

41,073

Less: Accumulated depreciation

30,915

27,522

Net machinery and equipment

14,168

13,551

Goodwill

13,714

9,551

Intangible assets

11,282

5,545

Operating lease right-of-use assets, net

3,812

4,372

Investment in partnerships

623

1,160

Long-term investment securities

-

8,629

Other assets, net

289

510

Total assets

$

116,465

$

113,593

Current liabilities:

Current financing leases

$

34

$

101

Current operating leases

1,512

1,729

Accounts payable

8,340

9,876

Accrued salaries, wages and commissions

4,271

2,274

Other accrued liabilities

4,429

2,869

Liabilities of discontinued operations

-

77

Total current liabilities

18,586

16,926

Noncurrent financing leases

2

30

Noncurrent operating leases

2,475

2,937

Other postretirement benefit obligations

349

382

Accrued pension liabilities

667

655

Deferred tax liabilities, net

1,104

-

Other long-term liabilities

3,790

2,171

Total liabilities

26,973

23,101

Commitments and contingencies

Shareholders’ equity:

Common stock, $1.00 par value per share; 20,000 shares authorized; 8,943 and 8,781 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

8,943

8,781

Additional paid-in capital

88,908

86,770

Accumulated deficit

(7,902

)

(4,286

)

Accumulated other comprehensive loss

(474

)

(520

)

Total shareholders' equity

89,475

90,745

Non-controlling interest

17

(253

)

Total equity

89,492

90,492

Total liabilities and equity

$

116,465

$

113,593